Index

Anne Lafarre (Department of Business Law, Tilburg University, The Netherlands.)

The AGM in Europe

ISBN: 978-1-78743-534-6, eISBN: 978-1-78743-533-9

Publication date: 13 October 2017

This content is currently only available as a PDF

Citation

Lafarre, A. (2017), "Index", The AGM in Europe, Emerald Publishing Limited, Leeds, pp. 319-329. https://doi.org/10.1108/978-1-78743-533-920171027

Publisher

:

Emerald Publishing Limited

Copyright © 2017 Emerald Publishing Limited


INDEX

Note: Page numbers followed by “n” refer to notes.

ABN Amro
, 93n, 1, 151n2

Affiliate firms
, 174

Agency problem
, 7

Agency theory
, 4–6

Ahold NV
, 53

Allianz AG
, 54

Allied Irish Bank
, 158

Amendments to articles
, 82

Annual accounts
, 83

Annual General Meeting of Shareholders (AGM)
, 36–38

agenda of
, 65–87, 139–140

costs, reducing
, 297–298

law and economics of
, 3–18

legal framework of
, 21–34

in practice
, 7–12

scorecard
, 10

theoretical role
, 7

Asset managers
, 155

Attendance
, 8, 11, 103, 104, 107, 111, 112, 114, 116, 116n, 1, 136n, 38, 143, 156, 169–204, 248, 263, 270, 291–294, 296

See also Turnout

Audit Directive (Directive 2006/43/EC, revised by Directive 2014/56/EC)
, 23, 29, 33n, 7, 245

Article 37
, 22, 27

Article 37(1)
, 85

Australia

say-on-pay resolutions
, 172

two-strikes rule
, 284, 285

Australian Corporation Act (ACA)
, 284

Austria

amendments to articles
, 82

annual accounts
, 83

buyback own shares
, 81

cancelling shares and reducing share capital
, 81, 82

capital increases
, 78–79

corporate elections
, 66, 68

decision-making rights
, 64, 65

discharge
, 84

dividends
, 83, 84

forum rights
, 49

incentive schemes and share grants
, 73–74

participation procedures
, 39–40

remuneration policy
, 72

remuneration report
, 71

supervisory and non-executive remuneration
, 74

voting procedures
, 41

waiver of pre-emption rights
, 80, 81

Bank of Ireland Plc
, 71

Banzhaf index
, 127–131, 176, 199, 271–272

Behaviour

opportunistic
, 6

side-stepping
, 10–11

Belgium

amendments to articles
, 82

annual accounts
, 83

Annual General Meeting of Shareholders
, 37, 38

buyback own shares
, 81

cancelling shares and reducing share capital
, 81, 82

capital increases
, 79

corporate elections
, 66, 67

decision-making rights
, 64, 65

discharge
, 84

dividends
, 84

external auditor
, 85

Extraordinary General Meeting
, 37, 38

forum rights
, 50–52

incentive schemes and share grants
, 73

ownership information rights
, 58

participation procedures
, 40

related-party transactions
, 75

remuneration policy
, 72

remuneration report
, 71

say-on-pay resolutions
, 172

Shareholder Rights Directive, impact of
, 206, 207

waiver of pre-emption rights
, 80–81

BHP Billiton Plc
, 61n32

Blockholders
, 6, 17, 42, 110–112, 117n12, 121–123, 125, 133n, 2, 135n, 22, 135n, 25, 156, 160, 162, 172, 176, 177, 179, 202, 249, 250, 265n, 13, 270, 271, 273, 275, 278, 281, 285–287, 295–298

BMW AG (Bayerische Motoren Werke)
, 61n30

Board elections, minority shareholder behavior in
, 171–172

Brexit, impact on UK shareholder rights
, 93

Buyback own shares
, 81

Calling a meeting
, 25

Cancelling shares
, 81–82

C&C Group Plc
, 71

Capital Directive (Directive 2012/30/EU)
, 23, 26–27, 33n9

Article 13(1)
, 27

Article 17
, 83

Article 21
, 27

Article 25(2)
, 78

Article 29(1)
, 78

Article 29(2)
, 78

Article 33(4)
, 26, 80

Article 44
, 27, 80

Capital, increase of
, 78–80

Capital resolutions
, 144, 150

Children’s Investment Fund Management (TCI)
, 93n, 1, 152n, 2, 152n3

Commission Delegated Regulation (EU 2015/761)
, 28, 33n20

Common trend assumption
, 218–221

Communication platforms
, 286–287

Companies (Model Articles) Regulations 2008
, 44

Companies Act of 1990 (UK)
, 99n77

Concentrated ownership structures, small shareholder voting coordination in
, 269–288

coordination problems
, 271–276

de facto control
, 270–271

public good games
, 276–278

shareholder communication facilities
, 280–283

thresholds
, 284–285

vote trading and empty voting
, 278–280

Continental AG
, 61n30

Contractual theory of corporations
, 13

Control-enhancing mechanisms
, 121–124

Coordination problems
, 279–281, 283–287

shareholder voting games
, 273–276

voting power theory
, 271–273

Corporate democracy
, 14

Corporate elections
, 65–69

Corporate Governance Committee
, 231

Corporate insiders
, 155, 156–157, 160, 174, 177–178, 249

impact on small shareholders turnout
, 178

Corporate law
, 93

Corporate ownership structures
, 119–136

Corporate theory
, 12

DCC Plc
, 71

Decision-making function
, 7, 291

Decision-making rights
, 22, 28, 63–100

amendments to articles
, 82

annual accounts
, 82–83

corporate elections
, 65–69

director elections
, 70

discharge
, 84

dividends
, 83–84

enterprise agreements
, 86

external auditor
, 85

notice period for general meetings
, 85

related-party transactions
, 74–75, 85–86

say-on-pay resolutions
, 69, 71–77

share capital resolutions
, 75, 78–82

shareholder proposals
, 64–65

Democracy

corporate
, 14

political
, 14

shareholder
, 13–14

Depository receipt holders
, 122–123

Deutsche Telekom
, 61n30

Directive 2007/14/EC
, 33n5

Directive 2013/34/EU
, 33n23

Directive 2013/50/EU
, 33n5

Directive 2014/56/EU
, 33n8

Article 39
, 65

Directive on Cross-Border Mergers (Directive 2005/56/EC)
, 27, 29, 33n17

Director elections
, 70, 88, 145–147, 150, 151, 200

Discharge
, 84

Disclosure and Transparency Rules (DTR)
, 56

Disclosure of ownership
, 56

Disclosure of voting rights
, 133n3

Dissent
, 138, 143, 146–150, 265n19, 173–174, 176–177

outsider
, 159–162

shareholder and executive remuneration, relationship between
, 172

Dividends
, 83–84

Doctrinal theory
, 13–14

Dutch law
, 229–231

Efficiency argument
, 12–13

Electronic participation
, 39

Employee Retirement Income Security Act (ERISA)
, 154

Empty voting
, 278–280

Enterprise agreements
, 86

E.ON AG
, 53–54

Equality, shareholder
, 14

Erste Group Bank AG
, 54

EU Member States
, 36–41, 43, 50, 52, 56, 58, 59, 60n, 5, 62n34, 63–65, 69, 72, 73, 75, 78, 80–83, 85–87, 93, 97n, 47, 97n49

European Commission (EC)
, 4

European framework of shareholder rights
, 21–34

Audit Directive (Directive 2006/43/EC, revised by Directive 2014/56/EC)
, 22, 23, 27, 29, 33n, 7, 85, 245

Capital Directive (Directive 2012/30/EU)
, 23, 26–27, 33n, 9, 78, 80, 83

Commission Delegated Regulation (EU 2015/761)
, 28, 33n20

Directive on Cross-Border Mergers (Directive 2005/56/EC)
, 27, 29, 33n17

Second Company Law Directive (Directive 2012/30/EU)
, 29

Shareholder Rights Directive (Directive 2007/36/EC)
, 22–26, 28–32, 34n, 16, 34n, 23, 34n, 24, 35, 38, 39, 42–44, 64, 229

Sixth Company Law Directive (Directive 82/891/EEC)
, 27, 29, 33n18

Takeover Directive (Directive 2004/25/EC)
, 23, 27–29, 33n, 3, 121

Third Company Law Directive (Directive 2011/35/EC)
, 23, 27, 29, 33n6

Transparency Directive (Directive 2004/109/EC)
, 23, 28, 29, 33n, 4, 56, 120, 122

European Securities and Markets Authority (ESMA)

European Union
, 22, 26

Executive remuneration and shareholder dissent, relationship between
, 172

External auditor
, 85

Extraordinary General Meeting (EGM)
, 36–38

Fictional shareholders
, 18n, 7, 153

Financial Choice Act
, 33n13

Financial Reporting Council (FRC)
, 284

Financial supervision authority of the Netherlands (Autoriteit Financiële Markten, AFM)
, 120

Fixed effects model
, 182

Florange law
, 13, 42

Flughaven Wien AG
, 54

Focal point
, 274

Forum function
, 7, 291

Forum rights
, 22, 36, 43–56, 59, 229, 232, 234–248

Austria
, 49

Belgium
, 50–52

categorization analysis
, 238–248

charter provisions
, 52–56

Dutch AGMs
, 237–238

France
, 49–50

Germany
, 47–49

Ireland
, 45

Netherlands, the
, 45–47

questions
, 234–237

United Kingdom
, 43–44

France

annual accounts
, 83

Annual General Meeting of Shareholders
, 37, 38

buyback own shares
, 81

cancelling shares and reducing share capital
, 81, 82

capital increases
, 80

corporate elections
, 66, 67

decision-making rights
, 64, 65

discharge
, 84

dividends
, 84

Extraordinary General Meeting
, 37, 38

forum rights
, 49–50

incentive schemes and share grants
, 74

ownership information rights
, 58

participation procedures
, 39

related-party transactions
, 74–75

remuneration policy
, 72

remuneration report
, 71

say-on-pay resolutions
, 172

Shareholder Rights Directive, impact of
, 206, 207

supervisory and non-executive remuneration
, 74

voting procedures
, 41–42

waiver of pre-emption rights
, 80, 81

Free-rider problems
, 8–10, 269, 275–277, 279

French Financial Markets Authority (Autorité des Marchés Financiers, AMF)

General Regulation of
, 58

Fresenius Medical Care AG
, 54

General method of moments (GMM) estimation method
, 184

Germany

amendments to articles
, 82

annual accounts
, 83

buyback own shares
, 81

cancelling shares and reducing share capital
, 81, 82

capital increases
, 78, 80

corporate elections
, 66, 67–68

decision-making rights
, 64, 65

discharge
, 84

dividends
, 83

enterprise agreements
, 86

forum rights
, 47–49

incentive schemes and share grants
, 73–74

ownership information rights
, 58

participation procedures
, 39

related-party transactions
, 86

remuneration policy
, 71–72

remuneration report
, 71

say-on-pay resolutions
, 172

supervisory and non-executive remuneration
, 74

voting procedures
, 41

waiver of pre-emption rights
, 80

GKN Plc
, 61n32

Governments
, 156, 157, 158, 174

Hedge fund activism
, 283

Herfindahl–Hirschman index (HHI)
, 121, 125, 126, 133, 134n5

HSBC Holdings Plc
, 61n32

Immobilien Anlagen AG
, 54

Incentive schemes
, 72–74

Incomplete information problem
, 120

Independent News & Media Plc
, 71

Independent voting
, 15

Information function
, 7, 291

Information rights
, 22, 28, 35–62

Informed voting
, 15

Institutional investors
, 155, 157, 174, 282–283

impact on small shareholders turnout
, 178

Institutional Shareholders’ Committee (ISC)
, 283

Institutional theory
, 13

Investmentgesetz

Article 32(1)
, 154

Investor-owned firms
, 13

Ireland

amendments to articles
, 82

annual accounts
, 82–83

buyback own shares
, 81

cancelling shares and reducing share capital
, 81, 82

capital increases
, 78, 79

corporate elections
, 66, 67

decision-making rights
, 64, 65

discharge
, 84

external auditor
, 85

forum rights
, 45

incentive schemes and share grants
, 73

notice period for general meetings
, 85

ownership information rights
, 56–57

participation procedures
, 38, 39

related-party transactions
, 75

remuneration policy
, 72

remuneration report
, 71

supervisory and non-executive remuneration
, 74

voting procedures
, 41

waiver of pre-emption rights
, 80, 81

Irish Central Bank

Transparency Rules of
, 57

Irish NPRF Act
, 164n16

Irish Stock Exchange (ISE)
, 154

Listing Rules
, 67, 71

Italy

corporate election system
, 172

Kapitalanlagegesetzbuch

Section 94(1)
, 154

Koninklijke BAM Group NV
, 4, 53

Labour-oriented model
, 15

Lack of dialogue
, 10

Law and economics
, 206, 210

Management proposals
, 173–174, 303n13

Manifest
, 71, 202n4

MAN SE
, 61n30

Marginal benefits (MB)
, 9, 10

Marginal costs (MC)
, 9, 10

Metro AG
, 61n30

Minimum notice period
, 38

Mitbestimmungsgesetz

Section
, 7, 94n13

Muenchener Rueckversicherungs AG
, 54

Nash Equilibrium
, 9

National Association of Pension Funds (NAPF)
, 138

National Dwellings Society v Sykes (1984)
, 43, 60n7

National level of shareholder rights
, 35–62

forum rights
, 43–56

ownership information rights
, 56–58

participation procedures
, 38–40

voting procedures
, 40–43

National Pensions Reserve Commission
, 158

National Pensions Reserve Fund Commission
, 125

Netherlands, the

amendments to articles
, 82

annual accounts
, 83

Annual General Meeting of Shareholders
, 37

buyback own shares
, 81

cancelling shares and reducing share capital
, 81, 82

capital increases
, 78, 79

corporate elections
, 66, 68–69

decision-making rights
, 64, 65

discharge
, 84

dividends
, 84

Extraordinary General Meeting
, 37

forum rights
, 45–47

incentive schemes and share grants
, 72–73

ownership information rights
, 57–58

participation procedures
, 38

remuneration policy
, 71

remuneration report
, 71

say-on-pay resolutions
, 172

Shareholder Rights Directive, impact of
, 206, 207

supervisory and non-executive remuneration
, 74

waiver of pre-emption rights
, 80, 81

Non-executive remuneration
, 74

Non-financial companies
, 155, 159

Notice period for general meetings
, 85

OECD Principles of Corporate Governance

principle II
, 155

Official Journal of the European Union
, 4

One-share-one-vote principle
, 14

Opportunistic behaviour
, 6

Opposition. See Dissent

Outsider Influence
, 163

Outsider shareholder opposition
, 159–162

Ownership concentration
, 125, 127, 133, 173, 249, 270

Ownership information rights
, 56–58

Ownership measures
, 120–121

Ownership structure
, 176

Participation by electronic means
, 211–212

Participation procedures
, 38–40

Philips NV
, 52–53

Policy implications
, 201–202, 224–225, 263–264, 291–300

AGMs costs, reducing
, 297–298

shareholder coordination, enhancing
, 298–299

shareholder rights, enhancing
, 296–297

Political democracy
, 14

Political elections, turnout in
, 174–176

Pre-emption rights
, 26, 143, 149, 151

waiver of
, 80–81

Private investors
, 228, 229, 233, 236–238, 243, 244, 246, 247–250, 254, 257–263

Procedural rights
, 22–24, 28, 35–62

Proportionality principle
, 14

Prospectus Directive (Directive 2003/71/EC)
, 164n14

Proxy voting
, 213

Public good games
, 276–278

common knowledge
, 277

communication
, 277–278

participant homogeneity
, 277

thresholds
, 278

Raiffeisen Bank AG
, 54

Random effects model
, 182

Rational apathy
, 8

Rational voting
, 15

Record date
, 33n, 12, 38

Related-party transactions
, 74–75, 85–86, 147, 151

Remote voting
, 40

Remuneration policy
, 71–72

Remuneration report
, 71, 248

Reorganisation Act
, 86

Re Piccadilly Radio Plc
, 44

Residual claimants
, 12

Residual loss
, 6

Rights-based reasoning
, 13

Right to ask questions
, 25–26, 212–213

Right to put items on agenda
, 210–211

Robustness tests
, 198–199

St Microelectronics NV
, 55, 61n31

Salzgitter AG
, 61n30

SAP SE
, 61n30

Say-on-pay resolutions
, 69, 71–77, 142, 143, 147, 150, 151, 172

incentive schemes and share grants
, 72–74

related-party transactions
, 74–75

remuneration policy
, 71–72

remuneration report
, 71

supervisory and non-executive remuneration
, 74

SBM Offshore NV
, 53, 61n29

Schelling point. See Focal point

Second Company Law Directive (Directive 2012/30/EU)
, 29

Shapley–Shubik index
, 127–132, 135n, 34, 136n, 38, 176, 199, 250, 254, 272

Share capital, reducing
, 81–82

Share capital resolutions
, 75, 78–82

buyback own shares
, 81

cancelling shares and reducing share capital
, 81–82

capital increases
, 78–80

waiver of pre-emption rights
, 80–81

Share grants
, 72–74

Shareholder, legal role of
, 299–300

Shareholder activism
, 139, 151n, 2, 177, 278

Shareholder attendance. See Attendance

Shareholder behavior
, 153–165

Shareholder communication facilities
, 280–283

acting in concert
, 281–282

institutional investors
, 282–283

Shareholder control
, 12–15

Shareholder coordination, enhancing
, 298–299

Shareholder, defined
, 122

Shareholder democracy
, 13–14

Shareholder dialogue
, 227–266

causal interference
, 248–261

Dutch law
, 229–231

forum rights
, 234–248

policy implications
, 263–264

Shareholder dissent. See Dissent

Shareholder efficiency
, 14–15

Shareholder equality
, 14

Shareholder opposition. See Dissent

Shareholder-oriented model
, 15

Shareholder participation
, 170, 199, 218, 263

Shareholder plutocracy
, 15

Shareholder proposals
, 25, 64–65, 139, 141–150, 171, 177

Shareholder rights
, 12

enhancing
, 296–297

European framework of
, 21–34

national level of
, 35–62

Shareholder Rights Directive (Directive 2007/36/EC)
, 4, 22, 34n, 23, 34n, 24, 175, 229, 283

Article 10
, 24, 35

Article 11
, 24

Article 14
, 24

Article 14(1)
, 60n5

Article 3a
, 32

Article 3c
, 32

Article 3f
, 30

Article 3h
, 30

Article 5
, 23

Article 5(3)
, 24

Article 5(4)
, 24

Article 6
, 64, 25, 138–139, 171, 177, 210

Article 7
, 24

Article 7(1)(a)
, 24

Article 8(1)
, 24

Article 9
, 26, 34n16

Article 9(a)
, 30

Article 9(a)(1)
, 30, 71

Article 9(b)(1)
, 30

Article 9(b)(4)
, 31

Article 9(c)(4)
, 31

Article 9(1)
, 34n, 16, 46

Article 9(2)
, 26, 43–44

current developments
, 28–32

decision-making rights
, 64

forum rights
, 43–45, 50, 51

Impact Assessment
, 23, 25, 30

impact of
, 205–226

implementation at national level

information prior to AGM
, 209–210

participation and voting, requirements for
, 211

participation by electronic means
, 211–212

proxy voting
, 213

right to ask questions
, 212–213

right to put items on agenda and table draft resolutions
, 210–211

voting results, publication of
, 214

participation procedures
, 38, 39

placebo analyses
, 221–223

policy implications
, 224–225

procedural rights
, 23–24

right to ask questions
, 25–26

shareholder proposals and calling a meeting
, 25

voter turnout
, 103

voting procedures
, 42–43

Shareholder structure
, 124–125

Shareholder turnout. See Attendance; Shareholder voter turnout; Turnout

Shareholder types
, 154–159

Shareholder voice
, 14

Shareholder voter turnout
, 103–117

sample selection
, 104–107

small
, 110–114

total
, 107–110, 178–179, 184–190

Shareholder voting
, 7, 8, 14–17, 170–174, 205

agreements
, 123

behavior
, 137–152

games
, 273–276

general studies
, 173–174

items
, 171–173

Share redemptions
, 99n77

Side-stepping behaviour
, 10–11

Sincere voting
, 15

Sixth Company Law Directive (Directive 82/891/EEC)
, 29, 33n18

Article 5
, 27

Article 7
, 27

Article 9
, 27

Small shareholders

attendance at AGM
, 169–204

benefits, increasing
, 201

policy implications
, 201–202

turnout

corporate insider’s impact on
, 178

institutional investor’s impact on
, 178

voting coordination, in concentrated ownership structures
, 269–288

coordination problems
, 271–276

de facto control
, 270–271

public good games
, 276–278

shareholder communication facilities
, 280–283

thresholds
, 284–285

vote trading and empty voting
, 278–280

voter turnout
, 110–114, 177–178, 190

Société Générale SA
, 280, 281, 282

Spanish Companies Act

Article 521
, 266

State dependency
, 184

Stichting rechtsbescherming beleggers (‘Foundation legal protection investors)
, 233

Stock Corporation Amendment Act of
, 2009, 225n3

Strabag SE
, 54

Supervisory remuneration
, 74

Sweden

say-on-pay resolutions
, 172

Table draft resolutions
, 210–211

Takeover Directive (Directive 2004/25/EC)
, 23, 27–29, 33n3

Article 9
, 28

Article 10(2)
, 121

Article 21
, 28

stakeholders, defined
, 122

Theory of the firm
, 5

Theory on transaction costs
, 5

Third Company Law Directive (Directive 2011/35/EC)
, 23, 27, 29, 33n6

Thresholds
, 284–285

adding
, 284

lowering
, 284

Total shareholder voter turnout
, 107–110, 178–179, 184–190

Transparency Directive (Directive 2004/109/EC)
, 23, 29, 33n, 4, 120

Article 9
, 28

Article 10
, 28

Article 14(4)
, 56

Article 54
, 33n9

ownership information rights
, 56

Trust office
, 122

Tunnelling behaviour. See Opportunistic behaviour

Turnout. See also Attendance

in political elections
, 174–176

shareholder voter
, 103, 103–117, 177–178, 190

sample selection
, 104–107

small
, 110–114

total
, 107–110, 178–179, 184–190

small shareholders

corporate insiders’ impact on
, 178

institutional investors’ impact on
, 178

UK Cadbury Report
, 154

UK Stewardship Code
, 154–155, 283

Principle
, 6, 282

United Kingdom (UK)

amendments to articles
, 82

annual accounts
, 83

Annual General Meeting of Shareholders
, 37

buyback own shares
, 81

cancelling shares and reducing share capital
, 82

capital increases
, 78, 79

Companies Act of 1990
, 99n77

corporate elections
, 66–67

decision-making rights
, 64, 65

discharge
, 84

dividends
, 84

external auditor
, 85

Extraordinary General Meeting
, 37

forum rights
, 43–44

incentive schemes and share grants
, 73

notice period for general meetings
, 85

ownership information rights
, 56

participation procedures
, 38, 39

related-party transactions
, 75

remuneration policy
, 71

remuneration report
, 71

say-on-pay resolutions
, 172

Shareholder Rights Directive, impact of
, 208

supervisory and non-executive remuneration
, 74

voting procedures
, 41

waiver of pre-emption rights
, 80, 81

United States

say-on-pay resolutions
, 172

Vastned Retail
, 37

VBDO (Association for investors of sustainable development)
, 233, 243, 247

VEB (Association for Securities Holders)
, 231, 233, 238, 243, 266n25

Vedanta Resources Plc
, 62n33

Volkswagen AG
, 54

Vote trading
, 278–280

Voting

costs
, 205, 208, 224, 225

economies of scale for
, 175

empty
, 278–280

general studies
, 173–174

independent
, 15

informed
, 15

items
, 171–173, 179

items, rejected
, 141–150

by poll
, 42, 43

power
, 176, 249

power index
, 120, 127–133, 135–136n37

power measures
, 127–133

power theory
, 271–273

procedures
, 40–43

proxy
, 213

rational
, 15

remote
, 40

requirements for
, 211

results, publication of
, 214

shareholder. See Shareholder
, v

oting

shareholder proposals
, 171

‘show of hands’ option
, 42

sincere
, 15

Voting Rights Agreement
, 123

Waiver of pre-emption rights
, 80–81

Wall Street Walk
, 8

Wolters Kluwer NV
, 53, 61n27